Is it possible to sign a contract of a property without approved finance?

June 08, 2017
Tim Roberts

It is possible for you to find your dream property unexpectedly, without having approved finance. If you're tempted to put your foot down on an offer before you have approved finance, it is smart to understand what to do to avoid a sticky situation. 

Mortgage Choice Northern Rivers advises that our clients always obtain pre-approval before making an offer on a property but there are circumstances such as private treaty sales where you can sign a contract and indicate that your offer is subject to finance.

When making your offer “subject to finance” you are allowing for standard conditions of purchase. In this clause, you are granted time to organise a loan within a defined period of time. In the circumstance your loan application is not approved, you can choose to end the contract. 

It is always a smart idea to speak to a solicitor or conveyancer before you agree to contracts regardless, as they will ensure you are not caught out by certain working within the clause and will give you maximum flexibility to get out of the contract if your finance is not approved. 

If you are planning to purchase via auction, we recommend that you get pre-approval in place prior. As soon as the hammer falls, the contract is binding. 

Mortgage Choice Northern Rivers can assist you in order to gain pre-approval prior to your purchase, at no cost to you. We are experienced in assisting our clients all over the Northern Rivers who have signed a contract subject to finance. 

The key benefit of seeking out our services is that we understand your urgency and will work pro actively with your real estate agent, valuers and lenders in order to get you pre approval prior to your contact time requirements. 

Call and speak to the team today on 66847096

Posted in: Tips

Contact us today.

Additional Comments? * :